Dublin, April 15, 2024 (GLOBE NEWSWIRE) -- The "Global Semiconductor & IC Packaging Materials Market by Type (Organic substrate, Bonding wires, Leadframes, Encapsulation resins, Ceramic packages, Die attach materials, Solder balls), Packaging Technology, End-use industry, and Region - Forecast to 2029" report has been added to ResearchAndMarkets.com's offering.
The Semiconductor & IC packaging materials Market is projected to reach USD 70.9 billion by 2029, at a CAGR of 10.1% from USD 43.9 billion in 2024. The semiconductor and IC packaging materials market experiences dynamic growth fueled by various pivotal factors. Firstly, there is a rising demand for advanced packaging solutions due to continuous technological advancements in semiconductor devices. This demand is further boosted by the expanding market for consumer electronics and IoT devices, which require efficient and innovative packaging materials. Additionally, the industry witnesses a surge in the need for compact and lightweight packaging solutions, aligning with the trend of miniaturization in electronics. 
Moreover, the emergence of new applications such as autonomous vehicles and the implementation of 5G technology contribute significantly to the market's evolution. These new applications require sophisticated packaging materials to meet the stringent performance and reliability standards. Furthermore, the semiconductor industry's expansion in regions like Asia Pacific plays a crucial role in driving market growth. The region's strategic position as a global manufacturing hub, combined with government support and investment incentives, further propels the demand for semiconductor and IC packaging materials. In essence, the interplay of these factors drives the continuous growth and evolution of the semiconductor and IC packaging materials market, shaping its trajectory in response to evolving technological and industry trends.
Bonding wire, by type, accounts for the second-largest market share in 2023.
Bonding wire is the second-largest type segment for semiconductor and IC packaging materials due to several key factors. Firstly, bonding wires play a crucial role in connecting semiconductor devices to their package leads or pads, forming electrical connections essential for device functionality. This critical function makes bonding wires a fundamental component in semiconductor packaging. Secondly, advancements in semiconductor technology, such as the miniaturization of semiconductor devices and the shift towards higher-density packaging, have increased the demand for fine-pitch bonding wires capable of handling intricate bonding configurations.
This trend has driven the adoption of advanced bonding wire materials with improved electrical conductivity, thermal stability, and mechanical strength to meet the evolving requirements of modern semiconductor packaging. Additionally, bonding wires offer cost-effective solutions compared to other interconnection technologies like flip-chip bonding or wire bonding alternatives, making them a preferred choice for many semiconductor manufacturers, particularly in applications where cost considerations are significant. Furthermore, the versatility of bonding wires allows for compatibility with various packaging techniques, such as ball bonding and wedge bonding, providing flexibility in design and manufacturing processes. Overall, the combination of essential functionality, technological advancements, cost-effectiveness, and versatility positions bonding wires as a significant segment in the semiconductor and IC packaging materials market.
Consumer electronics is expected to be the fastest growing end use industry segment at CAGR 10.3% for semiconductor & IC packaging materials market during the forecast period, in terms of value.
Consumer electronics is the fastest-growing end-use industry for semiconductor and IC packaging materials due to several key factors. Firstly, the rapid pace of technological innovation in the consumer electronics sector drives continuous demand for advanced semiconductor devices with enhanced performance, functionality, and miniaturization. This demand, in turn, fuels the need for cutting-edge packaging materials capable of meeting the stringent requirements of modern electronic devices.
Secondly, the growing adoption of emerging technologies such as artificial intelligence (AI), internet of things (IoT), augmented reality (AR), and virtual reality (VR) in consumer electronics contributes significantly to the increased demand for semiconductor and IC packaging materials. These technologies rely heavily on high-performance semiconductor components that require efficient and reliable packaging solutions to function optimally. Additionally, the expanding global market for consumer electronics, fueled by rising disposable incomes, urbanization, and digitalization trends, further drives the growth of the semiconductor and IC packaging materials market. The proliferation of smartphones, tablets, laptops, wearables, smart home devices, and automotive electronics amplifies the demand for packaging materials across a wide range of consumer electronic products.
Based on region, North America was the second largest market for semiconductor & IC packaging materials market in 2023.
North America is the second-largest region after Asia Pacific for the semiconductor and IC packaging materials market due to several key factors. Firstly, North America is home to a significant number of leading semiconductor companies, research institutions, and technology hubs, particularly in regions like Silicon Valley in California. This concentration of industry expertise and innovation drives demand for high-quality packaging materials to support cutting-edge semiconductor technologies and applications. Secondly, North America boasts a robust consumer electronics market with a high adoption rate of advanced electronic devices such as smartphones, tablets, laptops, and IoT gadgets.
This demand for consumer electronics fuels the need for efficient and reliable semiconductor packaging materials to ensure optimal performance and functionality of these devices. Additionally, North America is at the forefront of technological advancements in areas like artificial intelligence (AI), machine learning, 5G technology, and autonomous vehicles, all of which rely heavily on semiconductor and IC packaging materials.
The region's strong focus on innovation and investment in emerging technologies contribute to the growth of the semiconductor packaging materials market. Furthermore, North America has a well-established manufacturing infrastructure and supply chain network for semiconductor and electronics industries, supporting efficient production and distribution of packaging materials. The presence of major semiconductor foundries, packaging and testing facilities, equipment suppliers, and research centers enhances the region's competitiveness in the global semiconductor packaging materials market.
Moreover, strategic partnerships, collaborations, and government initiatives aimed at promoting technological innovation and industry growth further bolster North America's position as a key player in the semiconductor and IC packaging materials market, making it the second-largest region after Asia Pacific.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 252 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $43.9 Billion |
| Forecasted Market Value (USD) by 2029 | $70.9 Billion |
| Compound Annual Growth Rate | 10.1% |
| Regions Covered | Global |
Key Topics Covered:
Executive Summary
- Organic Substrate Type Segment to Dominate Market Between 2024 and 2029
- Consumer Electronics End-use Industry to Lead Market Between 2024 and 2029
- SOP Packaging Technology to Lead Market Between 2024 and 2029
- Asia-Pacific to Dominate Market During Forecast Period
Premium Insights
- Attractive Opportunities for Players in Semiconductor & IC Packaging Materials Market
- Growing Demand from Automotive and IT & Telecommunication Sectors to Drive Market
- Semiconductor & IC Packaging Materials Market, by Type
- Organic Substrates to be Fastest-Growing Segment During Forecast Period
- Consumer Electronics to be Fastest-Growing Segment During Forecast Period
- SOP to be Fastest-Growing Segment During Forecast Period
- Semiconductor & IC Packaging Materials Market, by Country
- India to be Fastest-Growing Market During Forecast Period
Key Market Dynamics
Drivers
- Increasing Demand from Consumer Electronics Market
- Growing Miniaturization and Densification in Electronics Sector
- Adoption of Emerging Technologies Like 5G and Autonomous Vehicles
Restraints
- IP Concerns in Semiconductor Industry During Outsourcing and Testing Processes
- Technological Change and Obsolescence
Opportunities
- Integration with Advanced Technologies
- Need for Customization and Specialization in Electronics Industry
Challenges
- High Cost of Advanced Materials
- Stringent Regulations and Sustainability Factor
Case Studies
- Amkor's Contribution to Advancing Automotive Semiconductor Solutions
- Bolstering Semiconductor Packaging in US: Imperative of National Advanced Packaging Manufacturing Program
- Advancing Wearable Sensor Technology: Role of Master Bond Ep17Htda-1 Die Attach Adhesive in Integrating Advanced Sensor Components
Companies Profiled
- LG Chem.
- Jiangsu Changjian Technology
- Henkel
- Kyocera
- ASE
- Siliconware Precision Industries
- Amkor Technology
- Texas Instruments
- Ibiden
- Powertech Technology
- Chipmos Technologies
- Tong Hsing Electronic Industries
- Nepes Corporation
- Shinko Electric Industries
- Daeduck Electronics
- Macdermid Performance Solutions
- Renesas Electronics
- Samsung Electro-Mechanics
- Unimicron Technology
- Chipbond Technology
- Tanaka Holdings
- Nan Ya Plastics
- Hitachi High-Tech
- Sumitomo Chemical
- Verisilicon
For more information about this report visit https://www.researchandmarkets.com/r/rj9kwb
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